King Co., Ltd. (8118) AI Stock Analysis

• Market Cap: ¥15.50B
• Dividend Yield: 2.09%
• Average Volume (3M): 3.71K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.41
• Revenue Growth: -4.20%
• EPS Growth: 64.56%
• Country: JP
• Employees: 153
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 11.04
• Shares Outstanding: 24,771,560
• 10 Day Avg. Volume: 3,250
• 30 Day Avg. Volume: 3,710
• PEG Ratio: 0.42
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 21.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥933.00
• Price Target Upside: 8.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥929.00 ▲(7.77% Upside)

King Co., Ltd. demonstrates strong financial performance with consistent revenue growth and a robust balance sheet. The technical indicators suggest a bullish trend, supporting the stock's positive outlook. While the valuation is fair, the dividend yield adds to its attractiveness. The absence of recent earnings call data and corporate events does not detract from the overall positive assessment.

King Co., Ltd. Business Overview & Revenue Model

Company Description

KING Co., Ltd. manufactures and sells textile products. The company offers leather goods; artificial and synthetic leather products; synthetic fiber products; cotton, linen, cellulosic textile products; silk and hair products; pleated products, coats, etc.; and miscellaneous goods, such as bags and shoes. It provides its products under the PINORE, CECICA BLUE, JUDY, PRIDE, PRIDE BIS, MORABITO BLANC, MORABITO PREMIER, AUSTIN REED, mistico, and LUPUY brands. The company was formerly known as King Business Co., Ltd. and changed its name to KING Co., Ltd. in 1978. KING Co., Ltd. was founded in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

King Co., Ltd. generates revenue through the production and sale of its textile products. The company's revenue streams include direct sales to retailers and wholesalers, as well as contracts with industrial clients for specialized fabrics. Significant partnerships with fashion brands and large retail chains contribute to its earnings, allowing the company to leverage these relationships for broader market reach. Additionally, King Co., Ltd. invests in research and development to create innovative textiles that meet evolving consumer demands, which in turn supports its profitability.

King Co., Ltd. Financial Statement Overview

Summary

King Co., Ltd. exhibits a strong financial position with consistent revenue growth and efficient operational management. The balance sheet is solid with low leverage, enhancing financial stability. While cash flow generation remains positive, attention to maintaining free cash flow levels is advisable to ensure sustained financial health.

Income Statement

King Co., Ltd. has shown a consistent revenue growth trend over the past few years, with a notable recovery from the dip in 2021. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin has seen fluctuations, reflecting some volatility in net income. The EBIT and EBITDA margins are healthy, suggesting operational efficiency, though there was a decline in EBIT margin in the latest year.

Balance Sheet

The balance sheet of King Co., Ltd. is robust, with a high equity ratio indicating strong financial stability. The company maintains a low debt-to-equity ratio, showcasing prudent financial management and low leverage risk. Return on equity has improved, reflecting better profitability relative to shareholder investment.

Cash Flow

The cash flow statement reveals a positive trend in free cash flow, although there was a decline in the latest year. The operating cash flow to net income ratio is strong, indicating good cash generation from operations. However, the free cash flow to net income ratio has decreased, suggesting potential challenges in maintaining free cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.13B	8.16B	8.55B	8.42B	8.05B	8.10B
Gross Profit	4.53B	4.69B	4.89B	4.70B	4.53B	4.12B
EBITDA	1.29B	1.33B	1.37B	1.53B	1.06B	309.00M
Net Income	756.00M	733.00M	533.00M	755.00M	422.00M	-129.00M
Balance Sheet
Total Assets	25.61B	25.72B	25.60B	24.61B	24.26B	23.97B
Cash, Cash Equivalents and Short-Term Investments	10.61B	10.72B	10.80B	10.67B	10.48B	10.47B
Total Debt	380.00M	380.00M	480.00M	480.00M	530.00M	430.00M
Total Liabilities	3.21B	3.24B	3.70B	3.52B	3.19B	2.96B
Stockholders Equity	22.41B	22.48B	21.90B	21.08B	21.07B	21.01B
Cash Flow
Free Cash Flow	0.00	548.00M	688.00M	1.13B	273.00M	207.00M
Operating Cash Flow	0.00	880.00M	997.00M	1.54B	1.02B	680.00M
Investing Cash Flow	0.00	-575.00M	-416.00M	-404.00M	-765.00M	26.00M
Financing Cash Flow	0.00	-387.00M	-449.00M	-946.00M	-248.00M	-252.00M

King Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 862.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8118, the sentiment is Neutral. The current price of 862 is below the 20-day moving average (MA) of 869.80, above the 50-day MA of 861.46, and above the 200-day MA of 777.59, indicating a neutral trend. The MACD of 1.02 indicates Positive momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 24.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8118.

King Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9275	78 Outperform	$17.01B	12.17	―	3.15%	5.89%	11.19%
8118	76 Outperform	¥15.50B	18.23	―	2.09%	-4.20%	64.56%
9982	70 Neutral	¥15.47B	10.00	―	2.23%	7.83%	108.93%
3501	66 Neutral	¥16.98B	13.60	―	2.48%	1.50%	241.33%
3109	62 Neutral	¥12.21B	13.92	―	5.08%	1.93%	-1.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8107	41 Neutral	¥10.75B	―	―	―	48.75%	-620.85%